Operational Guidelines for Stations
- Stations/facilities must be constructed and operated to minimize interference with other stations.
- The grantee maintains the right to use selected wavelengths/frequencies without diminishing transmission quality.
National Telecommunications Commission (NTC) Authority
- Grantee must secure permits and licenses from the NTC before operation.
- Use of frequencies requires NTC authorization.
- NTC shall not unreasonably withhold or delay permissions.
Public Service Obligations
- Provide public service time for government information dissemination on important issues.
- Ensure sound and balanced programming.
- Assist in public information and education.
- Adhere to ethics of honest enterprise.
- Prohibit broadcasting of obscene, indecent, false, or misleading information.
- Prevent content that incites subversion or treason.
Government’s Special Rights
- The President may temporarily take over or suspend operation of stations during rebellion, calamity, emergency, or public disturbances.
- Temporary use by government agencies is allowed with due compensation.
Franchise Term and Revocation
- Franchise valid for 25 years from approval.
- Continuous non-operation for two years results in automatic revocation.
Acceptance of Franchise
- Franchise becomes effective only upon written acceptance by the grantee.
- Nonacceptance voids the franchise.
Taxation
- Grantee liable for real estate, buildings, and personal property taxes.
- Must pay 3% franchise tax on gross receipts from broadcast operations.
- Continues to pay income tax as prescribed by law.
- Must file tax returns and comply with audits by Bureau of Internal Revenue.
Self-Regulation and Content Control
- No prior censorship required on broadcast content.
- Must cut off any program inciting treason, rebellion, sedition, or containing indecent/immoral content.
- Failure to do so is grounds for franchise cancellation.
Indemnification of Government
- Grantee holds government free from claims arising from accidents or injuries linked to station operation or construction.
Restrictions on Transfer and Assignment
- Franchise cannot be leased, transferred, sold, or assigned without prior Congressional approval.
- Same conditions apply to any assignee or transferee.
Compliance with Future Broadcast Laws
- Grantee must comply with any general broadcast policy law enacted by Congress.
Separability Clause
- Invalidity of any provision does not affect the validity of the rest of the Act.
Repealing Clause
- Congress may amend or repeal the franchise when public interest requires.
- The franchise is not exclusive, and privileges are subject to alteration.
Effectivity
- Act took effect upon approval and lapsed into law on July 6, 1995 without the President’s signature in accordance with the Constitution.